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U.S. Bonds Affect Stock Markets; TSMC ADR Sees Decline While Nvidia Soars Post-Earnings

U.S. Bonds Affect Stock Markets; TSMC ADR Sees Decline While Nvidia Soars Post-Earnings

U.S. major stock indices fell on Wednesday due to rising U.S. Treasury yields, with the Dow Jones Industrial Average closing down 244.95 points or 0.58%. The S&P 500, Nasdaq, and Philadelphia Semiconductor indices also experienced declines of over 0.5%. TSMC's ADR fell by 0.78%, ending at $196.14.

Conversely, NVIDIA, a leader in AI chip manufacturing, reported impressive earnings, leading to a post-market price surge of more than 5%. According to reports, the Federal Reserve (Fed) released minutes from its May meeting in the afternoon, indicating that a cautious monetary policy stance is appropriate during times of economic uncertainty and warned of tough trade-offs if inflation rises. Traders are also watching the increase in bond yields closely, with the 30-year U.S. Treasury yield briefly hitting the 5% level during trading.

By the close, the Dow Jones Industrial Average was down 244.95 points at 42,098.70; the S&P 500 fell 32.99 points to 5,888.55; the Nasdaq dropped 98.22 points to 19,100.94; and the Philadelphia Semiconductor Index declined 26.67 points to 4,834.42. In terms of individual stocks, NVIDIA fell 0.51% to $134.81. The company announced a first-quarter profit of $18.8 billion (approximately NT$562.3 billion) with revenue of $44.1 billion. Investors are closely monitoring the impact of U.S. restrictions on mainland China, believing that the demand for the company's graphic processors will not slow down, resulting in a significant post-market rally in its stock price.